Just trying to see other peoples perspective and if were missing something in our thinking. Both options seem good and bad to us, leaving us unable to decide.
We have a large (£400k) interest only mortgage on our BTL. Do we pay this down with overpayments each year? Paying the fee free 10% annually would reduce the mortgage by around £150 a month. The original plan was to convert to am HMO at some point in the near future so we have enough funds to eventually pay the mortgage off.
OR
Instead of using the funds to pay down the above mortgage, use them to purchase an additional BTL? This should generate more money than if we reduce our existing BTL mortgage, plus any capital growth.
Financially, the second option makes more sense but being able to reduce the existing mortgage would also fill us with a sense of peace. We simply cant decide which is a better opportunity.
Any input/advise would be much appreciated.